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Turkish Electricity, Natural Gas and Petroleum Markets — New Regulation on Immovable Accommodation

Legal Alerts
EMI
Energy, Mining & Infrastructure

The regulation on immovable accommodation to be carried out by the Energy Market Regulatory Authority (EMRA) in the electricity, natural gas and petroleum markets (“Regulation“) was published in the Official Gazette dated 2 November 2021 and entered into force on the same date. Please click here for the full text of the Regulation in Turkish.

What’s new?

The Regulation will apply to immovable accommodation to be carried out by the EMRA, instead of the previous principles and procedures. In addition, the Regulation ensured compliance with Law No. 7257, which entered into force on 2 December 2020.

1. Applications for immovable accommodation

Legal entities holding a preliminary license or license should apply to the EMRA electronically or in writing for immovable accommodation. The EMRA will announce the application procedure and the required information and documents for the application on its website.

2. Expropriations and permits

The EMRA will evaluate the requests for immovable accommodation/the expropriation of privately owned properties required for facilities subject to preliminary license or license-based activities. If the EMRA accepts the request, its decision will be annotated in the land registry of the immovable properties by the relevant land registry office. In line with Law No. 7257, the EMRA will be the responsible body to conclude immovable accommodation instead of other relevant public bodies, except where the national electricity distribution company (TEDAŞ) is responsible for the same regarding electricity distribution companies.

The Regulation also includes the procedures and principles of urgent expropriation. Furthermore, it regulates the right of easement and usage permits, free usage permits and lease procedures for immovable properties under the private ownership of the Treasury and the places under the rule and disposal of the State.

3. Attorney transactions

Private legal entities holding a preliminary license or license must notify a sufficient number of lawyers to be assigned to represent the EMRA if requested by the EMRA. This requirement is in line with previous implementations regarding the same issue. The relevant preliminary license or license owner will be responsible for the attorney fees in that regard.

4. Securities and the failure to fulfill obligations

The private legal entity holding a preliminary license or a license will be under the obligation to submit a definite and unlimited letter of guarantee to the EMRA for immovable accommodation, except natural gas distribution license holders. This is in line with the previous implementation. The Regulation additionally states that natural gas distribution license holders must submit a declaration showing that the relevant immovable is within the scope of its investment program.

5. Facilities located in Organized Industrial Zones (OIZ)

The EMRA will not take any actions regarding immovable accommodation in relation to electricity generation facilities in OIZ. The natural gas and oil distribution pipelines to be built within the OIZ and the natural gas distribution pipelines to be passed through the OIZ within the scope of the distribution region will be provided with a protocol to be signed between the OIZ and the private legal entity holding a distribution license. These regulations are in line with the previous implementation regarding the same issues.

6. Ongoing procedures

Concerning the immovable accommodation procedures that are ongoing as of 2 December 2020:

  1. TEDAŞ will finalize the processes for electricity distribution facilities.
  2. The EMRA will finalize the processes for electricity generation facilities, for which no expropriation decision has been taken by the Ministry of Environment and Urbanization and/or the process for the transfer of ownership has not been initiated.

Conclusion

The Regulation re-regulates the principles and procedures to be followed by the EMRA regarding immovable accommodation in the electricity, natural gas and petroleum markets based on the latest developments.

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